Toyota Reports Nearly Doubled Profit on Strong Sales and Weak Yen

Toyota announced a significant surge in its first fiscal quarter profit, nearly doubling to 1.48 trillion yen ($8.16 billion) compared to 841 billion yen in the previous year. This substantial increase, covering April to June, was fueled by robust demand in key markets like the United States and India, alongside the beneficial impact of a weak yen on its overseas earnings. Quarterly sales also saw a healthy 10% rise, reaching 13.5 trillion yen ($74.4 billion).

The favorable exchange rate played a crucial role, adding approximately 345 billion yen ($1.9 billion) to Toyota's operating profit during the quarter. The U.S. dollar traded around 145 yen in the first quarter of fiscal 2025, but strengthened to about 160 yen this year, before settling around 158 yen following recent joint intervention by the U.S. and Japan.

“

The favorable effect of the currency added 345 billion yen ($1.9 billion) to Toyota's quarterly operating profit in the period April-June.

While Toyota sold slightly fewer vehicles globally in the quarter (2.39 million units compared to 2.41 million a year prior), the company remains optimistic. It projects selling 9.7 million vehicles for the full fiscal year, an increase from the 9.595 million sold last year. Demand for Toyota's hybrids, including the Camry and RAV4, remains strong, particularly in the U.S. The automaker plans to increase hybrid and battery production by 2030 to reduce costs.

Despite challenges such as instability in the Middle East impacting shipping routes and production halts due to earthquakes in Japan, Toyota is actively seeking solutions. The company is exploring alternative routes and working to resume production at its affected plants. For the full fiscal year ending March 2027, Toyota projects a profit of 3.25 trillion yen ($17.9 billion), a decrease from the 3.85 trillion yen ($21.2 billion) achieved in the previous fiscal year.

“

Demand for Toyota's hybrids remains strong in various global markets, including the U.S., where the mid-size sedan Camry and the compact sports utility vehicle RAV4 are selling quickly.